chapter 5 business
a business can be classified as a "small business" if it has fewer than
500 employees
during the first five years of operation, about ______ of small businesses fail.
80 percent
who would NOT be considered an entrepreneur?
a doctor who is employed by a hospital
which is NOT a small business?
a fast food chain
a business plan must follow ______
a logical format
what is the most important reason many small businesses fail?
entrepreneurs sometimes don't start with good financial planning
*entrepreneurs start a business in an area that is not similar to their experience
false
*knowing about business only benefits you as an employee, not a consumer
false
*there are 10 parts of a business plan
false
a plan presenting financial forecasts for the business
financial plan
which of the following is NOT on the checklist for starting a venue?
how will I produce?
which of the following is NOT a characteristic of successful entrepreneurs
irresponsible
what is a characteristic of the executive summary in a business plan?
it tells the most important points of the business plan
research of the potential business's industry
market analysis
the business plan section that includes demographic data about the target market and business location is called the
market analysis
most business in the United States are owned and operated by
one person
a vision statement
related to the scope and purpose
which is NOT a reward of entrepreneurship?
risking capital resources
which would most likely describe a successful entrepreneur?
self-starter
what does a mission statement do?
tells the major goals of a business
what is true of a long-term investment?
the value of the investment fluctuates over time.
which of the following is NOT a characteristic of an entrepreneur
timid
*in the marketing plan section, the market analysis includes research about the customers
true
the length of an executive summary should be limited to
two pages
a business plan is a written description of a new business venture that describes all ______ of the business
aspects
why do people have trouble getting money to start their own businesses?
banks are concerned that they won't be repaid.
most successful entrepreneurs have similar
characteristics
in a business plan, the size, scope, and type of business is explained in the ______ .
company description
what other piece of the business plan is related to the market analysis?
competitive analysis
the first page of a business plan
cover page
a new business undertaking involves risk and is called an(n)
venture
Internet businesses are often called ______ businesses.
virtual
company values and beliefs are established in the
vision statement
which of the following is NOT on the checklist for starting a venture?
where will I locate my business?
reasons to be an entrepreneur include all except
not wanting to work long hours
a plan of the business processes that result in production and delivery of product or service
operational plan
which part of a business plan describes management and tells who will run the firm?
organizational
the business plan section that identifies trends and growth within the industry is called the industry
overview
______ businesses are the principle source of new jobs in the United States.
small
businesses that are owned and operated by one person is called
sole proprietorship
the most common form of business in the United States is
sole proprietorship
what is a corporation?
a business with many owners
people become entrepreneurs for ______ reasons besides making money.
a variety of
the business plan section that identifies likely risks to the business is called the ____
contingency plan
when entrepreneurs find new ways to solve old problems they demonstrate their
creativity
which is often especially important to a small business?
creativity
before starting a particular business, an entrepreneur needs to determine if there is enough ______ for the product.
demand
a virtual business acts like a business, but its not a real business
false
what is the immediate future of virtual, or online, businesses?
more and more are coming on the scene
the business plan section that presents research about the company's customer profile is called the ____
market analysis
how a company will make customers aware of its products/ services
marketing plan
what is the most important reason for having a business plan?
to help you focus on how to succeed in your new venture
